Yes, that would be my thinking. RP could purchase the JV and the rights to sell the ZOLEO device exclusively globally. Beam would want to retain the IP and the device design IP, as otherwise you create a competitor in RP. Beam could still manufacture the devices and sell them on a commercial margin (ie: 30%+) to RP This basically creates a relationship similar to what we do with Iridium, when we produce a device for them. RP then make a margin on sales and also the subscriptions globally.
On those terms, I would argue that RP should be buying us out for US$20m at a minimum. Part of the buyout needs to acknowledge they screwed us on margins and they compensate us for that. Management could then do a capital return to shareholders of roughly 2 times our market cap (ie: A$30m). While still running the existing business and making more margin on ZOLEO sales.
BCC Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)